Descending Triangle

Search Dictionary

Definition of 'Descending Triangle'

A descending triangle is a technical analysis chart pattern that is formed when prices fall within a descending channel. The descending triangle is a bearish chart pattern that indicates that the price is likely to continue to fall.

The descending triangle is formed when prices fall to a support level and then bounce back up. However, each bounce is lower than the previous one, creating a descending channel. The descending triangle is completed when prices break below the support level.

The descending triangle is a bearish chart pattern because it indicates that the price is likely to continue to fall. The descending triangle is often used as a signal to sell a stock or other investment.

The descending triangle is a relatively simple chart pattern to identify. However, it is important to understand the implications of the pattern before trading on it. The descending triangle is a bearish chart pattern, so it is important to be aware of the risks involved before trading on it.

Here are some additional things to keep in mind when trading on the descending triangle:

* The descending triangle is a bearish chart pattern, but it does not always lead to a decline in price.
* The descending triangle can be used to identify potential support and resistance levels.
* The descending triangle can be used to identify potential entry and exit points for a trade.

If you are interested in learning more about the descending triangle, there are a number of resources available online. You can also find a number of books on technical analysis that discuss the descending triangle.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.